DAVID SPEERS:
David Bradbury thank you for your time. The Prime Minister and the State Leaders agreed today to business demands to cut red tape and in particular, the overlap of some environmental regulations. When is this going to happen though? We've heard promises before about cutting red tape.
DAVID BRADBURY:
Good to be with you David. The first point to make in terms of timetables, the timetables around these matters will be the subject of discussion at the actual COAG meeting. But what was discussed today and what was decided upon in the communiqué, there are a number of very important initiatives that have been brought forward to Government, not just the Commonwealth Government but to government at all levels. They've been brought forward by business. We heard a very strong and very compelling argument from business today. When I say business, I'm talking big business and smaller business and they were all represented today. The message was that it is critical that we cut red tape. I know that we've all heard that before and I'm sure we'll continue to hear that in the future, but there was a very sharp focus about the sorts of issues that were being discussed today. In terms of the various approvals processes, whether it be major projects, environmental assessments, whether it be in the need to rationalise climate change programs or adopting a risk-based approach to regulation. The thing that came through very clearly from business, small and large, was that this is absolutely critical that we tackle these challenges for the competitiveness of our economy. But also in many cases to ensure that consumers are paying less for the goods and services that they are needing from businesses. I think that is an important point that can often be lost in this debate. Apart from trying to lessen the burden for business, to make sure that small business owners are not slaving over paper work on the kitchen table or to reduce the approval periods that larger business go through. The end point is that the more regulation there is, the more cost there is for business. Where there is cost for business, ultimately, some of those costs are passed on to consumers. So, I think it is important for the competitiveness of the economy, but it is also important for all Australians.
SPEERS:
Sure, but it is one thing to talk about it and make promises, it is another to deliver it. We've already seen, just within hours of the talks wrapping up, disagreements on particularly this issue of environmental regulation around who needs to cut their regulatory burden, the Federal Government or the State Governments? If you're only going to have one process that business goes through to get something environmentally approved, Campbell Newman, Barry O'Farrell are making it pretty clear that is should be the state regulations that stay in place. Julia Gillard says no, the Federal regulation should stay in place, how are you going to overcome this obstacle?
BRADBURY:
You made the point about delivery and I'll come to that quickly before I address the issue that you've raised around State verse Federal regulation. On the question of delivery, let's not pretend that we're coming to the table without having delivered some major deregulation reform. I think this is not understood, but under the Seamless National Economy reforms that our Government has been working with all State and Territory governments to deliver over the last four years, we have delivered out of the 27 priority areas reforms in 16 of those 27 areas which the Productivity Commission has estimated will deliver benefits to the economy in the order of around $4 billion. So let's not forget that there are reforms being undertaken. Many of these have been implemented -
SPEERS:
Sure, but you may have cut some regulation, Tony Abbott has pointed out and Campbell Newman has pointed out as well today that the carbon tax alone is going to add a whole pile of new regulation to business.
BRADBURY:
Well and you could have made the same point about the GST. It's interesting that none of the State Premiers are coming to Canberra to argue for the dismantling of the GST now that they are so dependent upon that revenue source -
SPEERS:
Yeah but the carbon tax is yet to be introduced.
BRADBURY:
Well we are introducing it, it has been through the Parliament, it is an important reform but what was discussed today by serious people sitting down to have a serious discussion about the future of the nation, in an environment where pricing carbon is the reality that we're dealing with, it is fair to say that there were people sitting at the table that may not agree with the approach the Government is taking, but everybody accepted that in an environment where pricing carbon is a reality, how can we best rationalise the full array of other climate change focussed policies at a State and Federal level? I think that is an important task that we have all committed to doing. What came through very strongly from business, is that they want governments at all levels to be working as hard as they can to reduce that regulatory burden -
SPEERS:
Sure but on the carbon tax, this wasn't on the formal agenda today but we do know the views of most of those business leaders who were in the room today. They want the price cut from $23 to $10 at the bare minimum. Was that discussed at all today? Was it raised by anyone today?
BRADBURY:
No it wasn't, but can I say that there – you make the point about what you anticipate are the views of the people sitting around the room. I wouldn't understate the support of some of the business leaders that were there today for pricing carbon. I think you do –
SPEERS:
Sure, for a $23 price?
BRADBURY:
I think you do the business community a disservice to try and ascribe to them a single homogenous view. There are a range of views on this issue.
SPEERS:
Was there anyone there that you can say supports a $23 price?
BRADBURY:
I know that there are very strong supporters of the Government's proposals to price carbon. If you want me to go through and name some of them I can, but –
SPEERS:
I'm just asking whether anyone supports a $23 price? It's a different thing to the concept of a carbon price.
BRADBURY:
That is the Government's proposal. That's the Government's proposal that was put on the table when the particular business leaders I'm talking about supported the Government's proposal. As far as I'm aware –
SPEERS:
But there's no support for the actual price the Government's setting.
BRADBURY:
As far as I'm aware they continue to support it. I think the point here is, David, that –
SPEERS:
Well, publicly they're not. Publicly they're saying it should be cut to $10.
BRADBURY:
Sorry, I didn't hear that David.
SPEERS:
Publicly they're saying it should be cut to $10, that's what each of those business groups are on the record as saying.
BRADBURY:
Well, that may be the case for some of them; in fact some of them might be arguing there shouldn't be any price on carbon. The reality is that we are pricing carbon. That is a legislative scheme that has passed through the Parliament and will come into effect on 1 July, and we want to make sure that, notwithstanding some differences of opinion and there will be some with certain elements of the business community, we're here to govern for all Australians. We want to work very closely with business, as we did, I might add, throughout the global financial crisis. No country did a better job of working hand in hand with the business community to deliver the sort of response we had in this country. That's one of the key reasons why we averted recession. We want to keep working with the business community because in the end we know that the people represented around the table there today, they are attracting investment, they're generating wealth and they are creating jobs, and if there's one thing that this Government is absolutely determined to do, it's to continue to support a strong labour market.
Can I make this final point in relation to that and that's to say there was a point around where there was considerable consensus that doesn't necessarily have huge flashing lights around it in the communique, but a number of the business leaders there said that they think it's really important for Government and business to be working together to make sure that we continue to send a strong message about the confidence that we collectively have in the Australian economy. There's a lot of people out there talking down the Australian economy, but one noted figure in the meeting today made the point that if you look at the job figures in Australia in the last month, the job creation scenario in raw terms in Australia compared to the numbers of jobs being generated in the United States, we are well and truly punching above our weight.